Termination of application of subsection (a)(4) in certain cases

Subsection (a)(4) shall not apply in the case of any individual who is not described in paragraph (2).

An individual is described in this paragraph if—

(A) on or before September 24, 1975 , he was entitled to receive any amount described in subsection (a)(4),

(B) on September 24, 1975 , he was a member of any organization (or reserve component thereof) referred to in subsection (a)(4) or under a binding written commitment to become such a member,

(C) he receives an amount described in subsection (a)(4) by reason of a combat-related injury, or

(D) on application therefor, he would be entitled to receive disability compensation from the Department of Veterans Affairs.

For purposes of this subsection, the term “combat-related injury” means personal injury or sickness—

(A) which is incurred— (i) as a direct result of armed conflict, (ii) while engaged in extrahazardous service, or (iii) under conditions simulating war; or

(B) which is caused by an instrumentality of war.

In the case of an individual who is not described in subparagraph (A) or (B) of paragraph (2), except as provided in paragraph (4), the only amounts taken into account under subsection (a)(4) shall be the amounts which he receives by reason of a combat-related injury.

In the case of any individual described in paragraph (2), the amounts excludable under subsection (a)(4) for any period with respect to any individual shall not be less than the maximum amount which such individual, on application therefor, would be entitled to receive as disability compensation from the Veterans’ Administration.